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Media Contact:
Will Wiquist, (202) 418-0509
will.wiquist@fcc.gov
For Immediate Release
SIEMENS TO PAY $175,000 FINE FOR FAILING TO DISCLOSE
FELONY CONVICTIONS
--
WASHINGTON, September 22, 2016 – Siemens Corporation and Siemens Medical Solutions
have agreed to pay $175,000 to resolve a Federal Communications Commission investigation into
whether the companies failed to disclose corporate felony convictions as required by the
Commission’s rules. Siemens, Siemens Medical, and some of their subsidiaries hold numerous
FCC wireless licenses and were required to disclose prior criminal convictions for violations of
the Foreign Corrupt Practices Act and, separately, obstruction of justice on their applications.
“A felony conviction is a serious offense that the Commission considers when deciding whether a
company is fit to hold a license or other authorization,” said Enforcement Bureau Chief Travis
LeBlanc. “It is our duty to ensure that any person or company that fails to submit candid,
complete, and accurate information about their background – criminal or otherwise – will be held
accountable.”
Under FCC rules, wireless license holders, like Siemens, Siemens Medical, and some of their
subsidiaries, are required to disclose any felony convictions in their license applications. Such
disclosures are important to the Commission’s role of ensuring that licenses to use wireless
spectrum are provided to appropriate entities. Siemens, Siemens Medical, and some of their
subsidiaries failed to meet their statutory and regulatory obligation to timely disclose its felony
conviction on applications filed between 2007 and mid-2015.
The FCC Enforcement Bureau’s investigation found that, in 2008, Siemens AG, the parent
company of Siemens and Siemens Medical, pleaded guilty to criminal charges of violating the
internal accounting provisions of the Foreign Corrupt Practices Act (FCPA). Some Siemens AG
subsidiaries also pleaded guilty to criminal charges for conspiracy to violate provisions of the
FCPA arising from bribes and kickbacks paid to foreign government officials to secure
government contracts for projects like a national identity card in Argentina and
telecommunications equipment in Bangladesh and Nigeria. That case resulted in Siemens AG
paying $450 million in criminal fines to the United States Department of Justice and a $350
million disgorgement to the United States Securities and Exchange Commission. In addition, in
2007, Siemens Medical pleaded guilty to a single federal charge of obstruction of justice in
connection with a civil matter, paying $2.5 million in fines and restitution.
Siemens and Siemens Medical fully cooperated with the Bureau’s investigation. As part of
today’s settlement, Siemens and Siemens Medical will pay a $175,000 fine. Both companies will
also adopt a compliance plan to prevent future failures to disclose the felonies at issue or any
other material factual information in future Commission license applications. The plan requires
Siemens and Siemens Medical to develop and implement procedures to monitor compliance with
the Commission’s rules governing the making of truthful and accurate statements to the
Commission. The companies must also designate a senior manager as a compliance officer,
develop a comprehensive training program, and report to the Enforcement Bureau regularly on
compliance.
Today’s Consent Decree with Siemens and Siemens Medical can be found here:
https://apps.fcc.gov/edocs_public/attachmatch/DA-16-977A1.pdf
###
Office of Media Relations: (202) 418-0500
TTY: (888) 835-5322
Twitter: @FCC
http://www.fcc.gov/office-media-relations
This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes
official action. See MCI v. FCC, 515 F.2d 385 (D.C. Cir. 1974).